Evaluating Underlying Symbol Implied Volatility Rank

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FAQs

Why is implied volatility important to consider for options trading?

Implied volatility is forward-looking and represents the amount of volatility expected in the future.

Implied volatility increases with large price movements in the underlying security. As implied volatility rises, an options contract’s price increases because the expected price range of the underlying security increases.

Should I consider different trade types based on different IV readings?

Different strategies can be used for different IV values. It is a good idea to reference IV when trading options, as it is a big factor in a contract's extrinsic value.

When an automation runs, can I see the actual IV reading and how it compares to my setting?

Yes, you can view the bot log to see the symbol's IV value when the automation ran.

How does IV rank differ from implied volatility?

IV rank calculates current implied volatility compared to a security's value over the past year. Implied volatility is an absolute value, so IV rank puts that absolute value into context by stating the current IV compared to the one year high and low. If todays IV is below any of the end of day closes of the previous year, it will have a negative IVR. If the current IV is above the any of the previous year's closing IV, it will be above 100 IVR.

Can this criteria be used for both entries and exits?

Yes.

Comparing Underlying Symbol Price

Comparing Underlying Symbol Properties

Evaluating Underlying Symbol OHLC

Evaluating Underlying Symbol Performance

Evaluating Underlying Symbol Standard Deviation

Comparing Underlying Symbol Price to an Indicator

Comparing Multiple Underlying Symbol Indicators

Evaluating Underlying Symbol Earnings Reporting

Evaluating Underlying Symbol Price Probability

Evaluating Underlying Symbol Probability Within Range

Evaluating Symbol Type

Evaluating Bot Properties

Evaluating Bot Available Capital for Opportunities

Comparing Bot Position Count to Position Type

Comparing Bot Position Count to Underlying Symbol

Evaluating Bot Position Count to Position Type and Underlying Symbol

Evaluating Bot Last Position Activity

Evaluating Bot Last Activity with Underlying Symbol

Evaluating Bot Position Activity History

Evaluating Bot Position Activity History with Underlying Symbol

Comparing Bot Active Orders Status

Comparing Bot Active Orders Status with Underlying Symbol

Evaluating Bot Position Availability

Evaluating Bot Tags

Evaluating Opportunity Availability

Evaluating Opportunity Return Expectations

Comparing Opportunity Attributes

Comparing Opportunity Leg Attributes

Comparing Opportunity Bid-Ask Spread

Evaluating Opportunity Probabilities

Evaluating Position Performance

Comparing Profit Target to Trailing Value

Comparing Position Time to Expiration

Comparing Position Duration

Evaluating Position Underlying Symbol

Comparing Position Properties

Comparing Position Leg Properties

Evaluating Position Type

Evaluating Position Side

Comparing Underlying Symbol Price to Position Leg

Evaluating Position Tags

Evaluating Underlying Symbol Indicator Properties

Comparing Multiple Underlying Symbol Indicator Properties

Evaluating MACD Technical Indicator

Comparing Bollinger Bands to Symbol Price

Evaluating Stochastic Technical Indicator

Comparing VIX Properties

Evaluating Market Time of the Day

Evaluating Days of the Week

Evaluating Bot Switches

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Kirk Du Plessis

Founder

Last updated:

Jan 23, 2024

Originally published:

Nov 29, 2021